© Encompassing content-to-consumer value chain. Zee has been investing heavily in new businesses and content. After restructuring, ZEEL now owns 12 channels (including general entertainment, music, movies, sports, etc.). Moreover, it has also acquired Ten Sports Channel. Company is expected to benefit from changing media landscape on account of implementation of CAS in metros and emergence of DTH as an alternate distribution platform.
© Indian television industry is going through a very interesting phase. Market will expand with lot many new channels in each genre launched or being launched which will have positive implication for all players in media value chain and ZEEL with its diversified genre of content offering, would be a big beneficiary of this change through unlocking of its revenue potential.
© TV advertising has also been seeing a sustained and accelerated growth as one of the most preferred media for FMCG, consumer durables, auto, financial services, and host of other industries to get thru their message across to consumers. Company has been able to successfully increase ad rates following growing popularity of its programmes.
© Its flagship channel Zee TV has emerged as a firm challenger to number one position in viewership share across all competing channels in General Entertainment Category (GEC) genre with its programs in each slot has started to record higher GRP. As on March 2008, Zee TV had 25 programs in “Top 50 program” from just 2 in 2005.
© It has launched Zee Next – new channel in General Entertainment Category (GEC) focusing on youth audiences thereby bridging missing link in GEC space. Launched in Q3 FY08 end, Zee Next is well received and is now planning to roll out fully with aggressive programming and marketing strategy in FY 2009. Break-even of this channel will be in FY 2012. ZEEL plans to de-merge this channel into a separate firm.
© Besides, company plans to re-enter film production thru an existing Mauritius based subsidiary, which would hold 80% stake in Zee Entertainment Studio. Subsidiary will have 2 divisions – Zee Motion Pictures producing Bollywood films with Rs. 50-60 crore budget and Zee Limelight, which will produce low cost movies in Hindi, Marathi, Bengali, Telugu, Tamil and Kannada. Foray into film production would add another dimension to media conglomerate and movies business will offer some synergies with its broadcasting business. .
© Subscription revenue is expected to grow faster at 30% as compared to advertising revenue as they are going to be more platforms to distribute channels in FY 2009. Company may also make ad-rate hike to monetize higher ratings. Besides, resurgence in Pay TV revenues from higher DTH, cable & international sales will increase revenues and profits substantially in future. Company expects to grow top-line @ 30% and bottom-line @ 25-30% (despite losses from Zee Next) in FY 2009.
For FY 2008, Consolidated revenues rose by 26.9% to Rs 1834.3 crore driven by 32.8% growth in advertising revenues of Rs.934.23 crore and 10.2% increase in subscription revenues of Rs.732.6 crore, while Other sales & services perked by 118% to Rs.167.50 crore. OPM% jumped to 29.4% (22.1%). After providing for higher interest cost of Rs.55.44 crore (includes forex loss of Rs.26.18 crore), PBT (after extra-ordinary expense) grew @ 66% to Rs 569.72 crore and PAT (after minority interest) spurted by 72.7% to Rs 383.7 crore.
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